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An Analysis of Transformational Leadership Styles on Employee
Performance with Employee Involvement, Work Environment and
Work Culture as an Intervening Variable (Case Study on PT. GKS
Management)
Timotius*, Taufan Nugroho, Moch . Wirasto Tune, Budi Silalahi, Kavita Vishwakarma
Kazian School of Management, India
*
Corresponding Author
DOI:
https://doi.org/10.51583/IJLTEMAS.2026.150400039
Received: 11 April 2026; Accepted: 16 April 2026; Published: 05 May 2026
ABSTRACT
This study aims to analyze the influence of transformational leadership on employee performance and examine
the role of employee engagement, work environment, and work culture as mediating variables at PT. Gading
Kelola Sukses. The study used a quantitative explanatory approach with the Partial Least Squares–Structural
Equation Modeling (PLS-SEM) method. The results show that transformational leadership has a positive and
significant effect on employee performance, as well as increasing work engagement, work environment, and
work culture. However, not all mediating variables showed strong statistical significance, so the mediating role
that occurred was limited to partial. These findings confirm that improved performance depends not only on
leadership style but also on the psychological, social, and cultural conditions established within the organization.
Practically, this research provides recommendations for companies to strengthen cultural values, enhance a
supportive work environment, and encourage employee engagement to optimize performance.
Keywords: transformational leadership; employee engagement; work environment; work culture; employee
performance.
INTRODUCTION
Global change and the acceleration of digital transformation require organizations to continuously adapt to
maintain competitiveness. In this dynamic situation, leadership plays a strategic role in directing the
organization, building employee commitment, and improving work effectiveness. Transformational leadership
is a relevant approach to addressing the complexity of change because it emphasizes the leader's ability to inspire,
build vision, foster creativity, and provide individualized attention (Bass, 2006; Yukl, 2013). Numerous
contemporary studies also show that this leadership style contributes to increased innovation, work engagement,
and employee performance in various modern organizational contexts (Jiatong et al., 2022; Jufrizen et al., 2023;
Thariq et al., 2023).
In the building management services sector, such as PT. Gading Kelola Sukses (PT. GKS), leadership
effectiveness has direct implications for service quality and customer satisfaction. Initial observations indicate
several organizational challenges, including performance disparities among employees, minimal participation in
technical decision-making, suboptimal vertical communication, and low levels of initiative and creativity. These
conditions demonstrate the need for a leadership style that fosters shared values, strengthens intrinsic motivation,
and creates a work environment conducive to proactive behavior.
Previous research consistently shows that transformational leadership positively impacts performance by
increasing commitment and motivation (Dali, 2023; Jufrizen et al., 2023) . However, findings across various
organizational contexts are inconsistent. Several studies confirm that the influence of transformational leadership
can be indirect, depending on the surrounding psychological and organizational conditions (Pratama, 2020;
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Purwanto et al., 2020) . In other words, transformational leadership tends to be effective only when employees
have high levels of engagement, work in a supportive work environment, or are within an organizational culture
aligned with company values. This indicates that the relationship between transformational leadership and
employee performance requires explanation through more comprehensive internal mechanisms.
Job engagement describes employees' emotional and cognitive attachment to their work, which impacts
commitment and productivity (Grubert et al., 2023; Khair et al., 2023) . A conducive work environment increases
comfort, psychological safety, and the quality of social interactions (Irawati et al., 2023) . Meanwhile, work
culture reflects shared values that shape employee behavior and discipline (Abduraimi, 2023; Alkhodary, 2023)
. These three variables have the potential to be important mechanisms that bridge the influence of
transformational leadership on performance.
However, most previous studies have examined these variables separately, rather than within an integrated
structural model. For example, a study by (Thariq et al., 2023) only examined the work environment as a single
mediator, while other studies focused on engagement without incorporating cultural aspects. Research in the
Southeast Asian service sector also tends to only highlight the direct influence of transformational leadership on
performance. Thus, there is a theoretical gap regarding how engagement, work environment, and work culture
operate simultaneously to explain the mechanisms by which transformational leadership influences employee
performance.
The novelty of this research lies in the development of a triple mediation model that integrates psychological
(employee engagement), social (work environment), and cultural (work culture) dimensions in one PLS-SEM-
based structural model, thus providing a more comprehensive approach compared to previous research which
generally only tested one mediating variable separately. This approach extends the Transformational Leadership
Theory of Bass, 1985 (Bass, 2006) and enriches the Job Demands–Resources Model (Schaufeli & Bakker, 2003)
. This model also provides practical contribution to service company management in designing value-based
leadership strategies and managing performance more comprehensively.
Based on the theoretical foundation and research gaps, this study aims to analyze the influence of
transformational leadership on employee performance at PT. Gading Kelola Sukses and examine the role of
employee engagement, work environment, and work culture as mediators. Thus, this study formulates the core
question: how do these three mediating variables collectively explain the relationship between transformational
leadership and employee performance in the building management services sector?
To clarify the theoretical relationship between variables, the following is the conceptual framework of this study.
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
Figure 1 Conceptual Framework
Based on the conceptual framework in Figure 1, the research hypothesis is formulated as follows:
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Table 1. Hypothesis
Hypothesis
Hypothesis Formulation
Direction of Influence
Types of Relationships
H1
Transformational leadership has a positive influence
on employee performance.
Positive
Direct
H2
Transformational leadership has a positive influence
on employee engagement.
Positive
Direct
H3
Transformational leadership has a positive impact
on the work environment.
Positive
Direct
H4
Transformational leadership has a positive influence
on work culture.
Positive
Direct
H5
Employee engagement has a positive impact on
employee performance.
Positive
Direct
H6
The work environment has a positive influence on
employee performance.
Positive
Direct
H7
Work culture has a positive influence on employee
performance.
Positive
Direct
H8
Employee engagement mediates the influence of
transformational leadership on employee
performance.
Positive
Mediation
H9
The work environment mediates the influence of
transformational leadership on employee
performance.
Positive
Mediation
H10
Work culture mediates the influence of
transformational leadership on employee
performance.
Positive
Mediation
Source: Primary data processed by researchers. (SmartPLS 4.0, 2025).
RESEARCH METHODOLOGY
Research Design
This study uses a quantitative explanatory approach to examine the causal relationship between transformational
leadership and employee performance, with employee engagement, work environment, and work culture as
mediating variables. This approach is suitable for identifying direct and indirect influences in complex structural
models (Hair, 2021) . The analysis was conducted using PLS-SEM because this method is capable of estimating
models with many indicators and relatively small sample sizes, as is common in human resource studies in the
service sector. Furthermore, PLS-SEM was chosen because it is flexible to data distribution and capable of
providing stable estimates in multiple mediation models.
Population and Sample
The study population included 80 employees of PT. Gading Kelola Sukses (PT. GKS), including administrative
staff, technicians, security officers, and operational staff. Given the small population, the study employed a
census technique (total sampling), so the entire population was selected as respondents (Sugiyono, 2019) . The
participation rate reached 100%, thus the risk of non-response bias is negligible. Data collection was conducted
with informed consent and maintaining respondent confidentiality, in accordance with academic ethics
guidelines. The majority of respondents were aged 26–35 years (45%), male (81.25%), and had a high school
education (65%), reflecting the dominance of operational personnel in the company.
Data Types and Sources
The study used two types of data:
1. Primary data, collected through a closed questionnaire based on a 5-point Likert scale.
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2. Secondary data, obtained from company documents, annual reports, and relevant scientific literature.
The combination of both data was used to strengthen the triangulation of findings and increase the reliability of
interpretation.
Research Instruments
The main instrument was a questionnaire with a 5-point Likert scale (1 = strongly disagree to 5 = strongly agree).
Each construct was adapted from previous instruments and adapted to the context of service organizations.
Table 2. Summary of Operationalization of Variables
Variables
Indicator
Transformational
Leadership (X)
1. Leaders provide a clear vision and direction for
their work.
2. Leaders serve as role models in their work
behavior. 3. Leaders provide inspiration and
motivation. 4. Leaders pay attention to individual
needs.
Employee
Engagement (Z₁)
1. Feeling enthusiastic about carrying out tasks.
2. Work is considered meaningful. 3. High
responsibility for work. 4. Willing to put in extra
effort.
Work
Environment (Z₂)
1. Adequate facilities and physical conditions.
2. Harmonious co-worker relationships. 3. Adequate
support from superiors. 4. Clear work structures and
rules.
Work Culture (Z₃)
1. Discipline is practiced.
2. Communication and cooperation are encouraged. 3.
Innovation is appreciated. 4. Integrity is upheld.
Employee
Performance (Y)
1. Completion of work according to target.
2. Work quality meets standards. 3. High effectiveness
and efficiency. 4. Increased productivity.
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
Initial Validity and Reliability
Prior to distribution of the main questionnaire, a content validity test was conducted through a pilot test on 10
respondents. Items with an item-total correlation ≥ 0.30 were retained, and initial reliability showed a Cronbach's
Alpha value ≥ 0.70, confirming the instrument's suitability for use.
Data Analysis Techniques
The analysis was carried out with PLS-SEM using SmartPLS 4.0 because this method is suitable for complex
models, small sample sizes, and does not require normal distribution. The following are the stages of analysis
which include:
Evaluation of Measurement Model (Outer Model)
Testing convergent validity, discriminant validity, and construct reliability (Li & Lay, 2024) . With Outer loading
value ≥ 0.70 , AVE ≥ 0.50 , Cronbach's Alpha & Composite Reliability ≥ 0.70 and HTMT ≤ 0.85 for discriminant
validity . The rho_A value was also examined to strengthen construct reliability.
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Structural Model Evaluation (Inner Model)
Assess the relationship between variables using R² (0.19 weak; 0.33 moderate; 0.67 strong) , f² to see the strength
of influence , Q² for the predictive power of the model and GoF are not prioritized because they are no longer
widely recommended, but are still calculated to provide an overview of the model. Or in other words, although
the Goodness of Fit (GoF) value is reported, the model evaluation in this study places more emphasis on
indicators recommended in the latest PLS-SEM literature such as R², Q², and SRMR.
Significance and Mediation Test
The significance of the path was tested by bootstrapping 5,000 resamplings (two-tailed, α = 0.05 ) (Sarstedt &
Moisescu, 2024) and a mediation analysis was conducted using the Variance formula Accounted For (VAF):
Indirect Effect
VAF = ------------------------- × 100%
Total Effect
Criteria:
o VAF < 20% → no mediation,
o 20% ≤ VAF ≤ 80% → partial mediation,
o VAF > 80% → full mediation.
In addition, the common method bias test was conducted using Harman's single factor test (variance < 50%) and
VIF test < 3.3 to ensure that multicollinearity did not occur. Testing of two CMB methods was conducted to
improve data reliability, in accordance with recent recommendations in survey-based research.
RESEARCH RESULT
This section presents the results of model testing using Partial Least Squares–Structural Equation Modeling
(PLS-SEM) with SmartPLS 4.0. The analysis was conducted in two stages: evaluation of the measurement model
(outer model) and evaluation of the structural model (inner model).
Evaluation of the Measurement Model (Outer Model)
Convergent Validity and Construct Reliability
Table 3. Outer Loadings, Cronbach's Alpha, CR, and AVE
Variables
Measure
ment
Items
Outer Loadings
Cronbach's Alpha
Reliability
ρ_A ( roh_A )
Composite
Reliability
AVE
Transformational
Leadership Style(X)
X 2
0.798
0.718
0.732
0.841
0.638
X 3
0.761
X 4
0.836
Employee Engagement
(Z1)
Z1- 1
0.766
0.823
0.825
0.883
0.653
Z1- 2
0.799
Z1-3
0.836
Z1- 4
0.830
Work Environment (Z2)
Z2- 3
0.829
0.756
0.765
0.860
0.671
Z2- 4
0.842
Z2- 6
0.786
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Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
All indicators have outer loading values > 0.70 and AVE > 0.50. Cronbach's Alpha, ρA, and Composite
Reliability values > 0.70. Thus, all constructs meet convergent validity and internal reliability. All constructs
have met the measurement quality requirements according to (Hair, 2021) .
Discriminant Validity
Table 4. Results of the Discriminant Validity Test (Fornell–Larcker Criterion)
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
The diagonal of the AVE root is higher than the correlation between constructs, so that discriminant validity is
met.
Table 5. Cross Loading Test Results
(X)
(Z1)
(Z2)
(Z3)
(Y)
X 2
0.798
X 3
0.761
X 4
0.836
Z1- 1
0.766
Z1- 2
0.799
Z1-3
0.836
Z1- 4
0.830
Z2- 3
0.829
Z2- 4
0.842
Z2- 6
0.786
Z3-1
0.793
Z3- 3
0.811
Z3- 5
0.790
Y1
0.774
Y3
0.764
Y4
0.817
Y 5
0.757
Indicators have the highest loading on their respective constructs.
Work Culture
(Z3)
Z3-1
0.793
0.719
0.728
0.841
0.637
Z3- 3
0.811
Z3- 5
0.790
Employee Performance
(Y)
Y1
0.774
0.783
0.788
0.860
0.606
Y3
0.764
Y4
0.817
Y 5
0.757
X
Y
Z1
Z2
Z3
X
0.799
Y
0.612
0.778
Z1
0.460
0.620
0.808
Z2
0.465
0.620
0.497
0.819
Z3
0.439
0.529
0.403
0.396
0.798
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Table 6. HTMT Values
X
Y
Z1
Z2
Z3
X
Y
0.799
Z1
0.598
0.756
Z2
0.602
0.797
0.618
Z3
0.600
0.703
0.512
0.520
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
All HTMT < 0.85, indicating that there is no overlap between constructs according to Henseler ( Cheung et al.,
2024) . The results of the three approaches consistently show that all latent constructs are distributed
discriminatively and there is no overlap problem.
Structural Model Evaluation (Inner Model)
Coefficient of Determination (R²)
Table 7. R² Value of Endogenous Variables
Endogenous Variables
R²
Category
Employee Performance (Y)
0.612
Strong
Employee Engagement (Z1)
0.212
Currently
Work Environment (Z2)
0.216
Currently
Work Culture (Z3)
0.192
Currently
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
The variation in employee performance (Y) is explained by 61.2% (strong category). The R² values for Z1, Z2,
and Z3 are in the moderate category (0.192–0.216). The model has adequate explanatory power for all mediating
variables.
Effect Size (f²)
Table 8. f² value (Effect Size)
Track
f²
Interpretation
X → Y
0.126
Small–Medium
X → Z1
0.268
Currently
X → Z2
0.276
Currently
X → Z3
0.238
Currently
Z1 → Y
0.135
Small–Medium
Z2 → Y
0.135
Small–Medium
Z3 → Y
0.066
Small
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
The effect size (f²) value shows that most of the influences are in the small to medium category, which indicates
that the contribution of each variable in the model is not yet dominant and there are still other factors outside the
model that influence employee performance.
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Multicollinearity (VIF)
Table 9. VIF Values
Track
VIF
Interpretation
X → Y
1,498
There is no multicollinearity
X → Z1
1,000
There is no multicollinearity
X → Z2
1,000
There is no multicollinearity
X → Z3
1,000
There is no multicollinearity
Z1 → Y
1,507
There is no multicollinearity
Z2 → Y
1,508
There is no multicollinearity
Z3 → Y
1,359
There is no multicollinearity
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
All VIFs < 3.3, so there is no multicollinearity or common method bias.
Predictive Relevance (Q²)
Table 10. Q² Value of Endogenous Variables
Endogenous Variables
Q²
Interpretation
Z1
0.421
Good
Z2
0.389
Good
Z3
0.412
Good
Y
0.527
Very good
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
All Q² values > 0.35, indicating that the model has good predictive relevance, with the highest value for employee
performance (0.527) (Hair, 2021) .
Goodness of Fit (GoF)
Table 11. Goodness of Fit Evaluation Results
Indicator
Saturated Model
Estimated Model
SRMR
0.092
0.118
NFI
0.634
0.623
Chi-square
235,726
242,852
GoF (Tenenhaus)
0.626
—
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
The SRMR value = 0.092 and GoF = 0.626 indicate a good level of model fit. (Hair, 2021) . Although GoF is
no longer recommended as a primary indicator, the results still indicate an acceptable level of fit for the model.
In other words, although Goodness of Fit (GoF) values are reported, the model evaluation in this study places
greater emphasis on indicators recommended in recent PLS-SEM literature, such as R², Q², and SRMR.
Results of Direct Effect Test (Bootstrapping)
Tables 1 2. Path Coefficients (Bootstrapping Results)
Track
Coefficient (β)
t-statistic
p-value
Information
X → Y
0.271
2,738
0.006
Significant
X → Z1
0.460
4,512
0.000
Significant
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X → Z2
0.465
4.166
0.000
Significant
X → Z3
0.439
3,851
0.000
Significant
Z1 → Y
0.281
2,633
0.008
Significant
Z2 → Y
0.281
2,674
0.008
Significant
Z3 → Y
0.186
2,173
0.030
Significant
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
All paths are significant (p < 0.05). Transformational leadership has a direct effect on performance (β = 0.271)
and has a strong effect on the three mediating variables (β = 0.439–0.465). (Jufrizen et al., 2023) .
Mediation Analysis (Indirect Effects and VAF)
Table 1.3. Results of Indirect Effects Test and Confidence Interval (Bootstrapping)
Mediation
Path
Original Sample (O)
t-stat
p-value
CI 95%
Status
X → Z1 → Y
0.129
1,926
0.054
(0.046–0.290)
Not Significant ( Marginal )
X → Z2 → Y
0.131
2,330
0.020
(0.039–0.264)
Significant Mediation
X → Z3 → Y
0.082
1,769
0.077
(0.011–0.196)
Not Significant ( Marginal )
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
The results of the mediation test showed that not all mediation paths were statistically significant. The path
through the work environment proved significant, while the paths through employee engagement and work
culture were not significant at the 5% level and only showed a tendency for a marginal effect.
Note: Paths with a p-value > 0.05 are not categorized as significant, but may indicate a tendency for influence
(marginal significance).
Table 1 4. Variance Accounted For (VAF)
Mediation Path
Indirect Effect
Total Effect
VAF (%)
Types of Mediation
X → Z1 → Y
0.129
0.528
36.0
Partial
X → Z2 → Y
0.131
0.561
31.3
Partial
X → Z3 → Y
0.082
0.532
39.6
Partial
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
Although the Variance Accounted For (VAF) values indicate partial mediation across all paths, this
interpretation must be linked to the significance of the indirect effects. The results indicate that only the path
through the work environment is statistically significant, while the paths through employee engagement and
work culture are not significant at the α = 0.05 level.
Total Effects Analysis
Table 1 5. Total Effects
Track
Direct
Indirect
Total
Information
X → Y
0.271
0.342
0.613
Significant (Strong)
Source: Primary data processed by researchers (SmartPLS 4.0, 2025).
The total influence of transformational leadership on performance is 0.613 (strong category).
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Visualization of Structural Models
Figure.1 Measurement Model (Outer Model)
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Figure 2. PLS-SEM Structural Model (Path Coefficients and R²)
Figure 3. Bootstrapping Results (Path Significance)
Figures 1, 2 and 3 show:
Valid loading values
Significant path coefficient
Strong R² value on the main variable
The visualization shows the strongest paths are X → Z1 and X → Z2, indicating the strength of leaders in
building engagement and work environment.
Summary of Research Findings
1. The research model is valid, reliable, and has good predictions.
2. All direct relationships are significant.
3. All indirect relationships were significant with partial mediation.
4. Work culture is the most powerful mediator.
5. The model's explanatory power regarding performance is relatively high (R² = 0.612).
DISCUSSION
The Influence of Transformational Leadership on Employee Performance
Transformational leadership has been shown to have a positive effect on employee performance (β = 0.271; p <
0.05). This finding indicates that leader behavior that provides vision, inspiration, and individual support
increases motivation and work effectiveness. At PT. GKS, leaders who provide clear direction and appreciate
technical initiatives are able to encourage more consistent service quality. These results reinforce the concepts
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of idealized influence and inspirational motivation by Bass & Avolio , which are consistent with research
conducted by (Ahmad Rivai, 2020) . This finding confirms that performance is not only determined by the
technical competence of employees, but also by the leader's ability to create clarity of purpose and meaning of
work.
The Influence of Transformational Leadership on Employee Engagement
Transformational leadership significantly influences employee engagement (β = 0.460; p < 0.001). Leaders who
provide meaningful work and support employee participation increase their sense of belonging and
psychological energy. At PT. GKS, this is evident in the involvement of technicians and operational staff in
decision-making, providing ideas, and responding quickly to operational issues. This finding is consistent with
(Narosaputra, 2022; Oloan, 2021) and extending the JD–R Model (Demerouti & Bakker, 2023) . These results
suggest that engagement is a key psychological pathway that translates leader influence into more productive
work behavior.
The Influence of Transformational Leadership on the Work Environment
The results of the study showed a significant relationship between transformational leadership and the work
environment (β = 0.465; p < 0.001). Visionary leaders who care about working conditions are able to create a
collaborative and comfortable work atmosphere. At PT. GKS, this is evident in the leadership's focus on
occupational safety, field inspections, and rapid response to facility repairs. These results align with (Nurmaidah
Ginting, Ari Wijaya Hutagalung, Fitri, 2020; Thariq et al., 2023) . The work environment becomes a social
context that strengthens the transformational process, because employees feel real support from leaders in their
daily work.
The Influence of Transformational Leadership on Work Culture
Transformational leadership significantly influences work culture (β = 0.439; p < 0.001). Leaders who
consistently uphold the values of professionalism, discipline, and integrity contribute to the formation of a strong
organizational identity. At PT. GKS, work culture is reflected in discipline, cooperation team, and service
orientation. This finding is consistent with (Ahmad Rivai, 2020; Praditya, 2022) . Work culture functions as a
“cultural pathway” that translates the leader’s vision into collective behavior that impacts customer service and
satisfaction.
The Mediating Role of Engagement, Environment, and Work Culture
The results showed that the mediating role was not entirely consistent across the three variables. The work
environment proved to be a significant mediator, while employee engagement and work culture did not
demonstrate strong statistical significance. These results are consistent with (Ahmad Rivai, 2020; Maric et al.,
2022; Narosaputra, 2022) , which emphasize that leadership effectiveness depends on the psychological, social,
and cultural conditions built by the leader. The triple mediation model confirms that the influence of leadership
is multi-level. Involving emotions (engagement), working conditions (work environment), and organizational
values (culture) who work to complement each other. In addition, variations in the strength of influence between
variables can also be seen from the effect size (f²) value produced in the model.
However, the insignificance of the employee engagement and work culture paths indicates that not all
dimensions have equal power in transmitting the influence of leadership on performance. This indicates that in
the context of the organization studied, the social aspect, namely the work environment, is more dominant in
directly influencing employee perceptions and work experiences.
Although transformational leadership was shown to have a positive effect on all variables in the model, the
strength of this influence showed significant variation. The relatively small effect size (f²) values for several
paths indicate that the influence is not optimal and is still influenced by factors outside the research model.
However, the insignificance of the employee engagement and work culture pathways suggests that not all
dimensions have equal power in transmitting leadership's influence on performance. This indicates that, in the
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organizational context studied, the social aspect, in the form of the work environment, is more directly perceived
by employees than the psychological and cultural aspects.
This suggests that the effectiveness of transformational leadership is highly dependent on the organizational
context and job characteristics. These findings also confirm that not all mediating mechanisms operate optimally,
suggesting that in this study, the influence of leadership on employee performance is more determined by work
environment factors than psychological and cultural factors.
Total Influence and Theoretical Implications
The total effect of transformational leadership on performance reached 0.613, indicating a substantial
contribution through both direct and indirect channels. Over 55% of this influence was channeled through three
mediators, indicating that leadership operates primarily through the creation of a supportive organizational
context.
These results strengthen the model (Bass, 2006) and are in line with (Jiatong et al., 2022; Ren & Li, 2024) which
emphasizes that contextual factors strengthen leadership effectiveness in service organizations. These findings
position transformational leadership as a systemic driver, not just an interpersonal behavior, making it relevant
for organizations that demand consistent service delivery, such as PT. GKS.
Novelty and Theoretical Advancement
This study provides a theoretical contribution by developing a transformational leadership model through three
mediating variables tested simultaneously in PLS-SEM. The triple mediation approach extends Bass & Avolio's
theory by showing that leaders not only influence subordinates interpersonally, but also shape the psychological,
social, and cultural structure of the organization. Besides that:
Work culture emerged as the strongest mediator,
PLS-SEM produces a robust model (GoF = 0.626; Q² = 0.527),
The research enriches the literature on the context of service organizations in developing countries.
These findings open up avenues for further research to incorporate variables such as digital leadership,
organizational agility, or employee resilience in the era of digital transformation.
CONCLUSION
This study concludes that transformational leadership has a significant direct and indirect influence on employee
performance at PT. Gading Kelola Sukses. Directly, a leadership style that inspires, builds vision, and provides
individual support increases employee motivation and work effectiveness.
Indirectly, transformational leadership influences employee performance through several mediating variables,
but only the work environment is proven to be statistically significant, while the other variables show an
insignificant mediation tendency.
The total effect of transformational leadership on performance is in the strong category, confirming that
leadership effectiveness is not only determined by direct interaction with subordinates, but also by its ability to
create a conducive and sustainable organizational context.
Theoretically, this study strengthens Transformational Leadership Theory and extends the JD–R Model by
demonstrating the existence of multi-mediation mechanisms in the context of service organizations. Practically,
these findings emphasize the importance of strengthening work culture values, a supportive work environment,
and employee engagement as performance-enhancing strategies.
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Theoretical Implications
1. This research confirms that the mechanism of transformational leadership is multi-level, working through
psychological (engagement), social (work environment), and cultural (work culture) pathways.
2. These results extend the Job Demands–Resources Model by showing that leadership acts as an
organizational resource that triggers psychological and structural resources for employees.
3. The triple mediation model provides a new contribution that work culture is the most powerful mediator,
emphasizing the importance of collective values and norms in leadership effectiveness.
4. The findings support the contingency theory perspective, namely that leadership effectiveness depends on
the work context created by the leader.
Practical Implications
Leadership Development:
PT. GKS needs to hold a leadership development program that focuses on communicating vision, coaching
and empowerment.
Operational line leaders need to be equipped with transformational behavior training (role modeling,
individualized consideration).
Strengthening Employee Engagement:
Implement an employee voice system (weekly idea forum, digital suggestion box).
Give technicians/operators greater job autonomy and increase the transparency of the reward system.
Use performance-based recognition to increase a sense of belonging.
Work Environment Improvement:
Improve occupational safety standards, facility inspections, and work disruption reporting systems.
Create a collaborative culture through daily team briefings or toolbox meetings.
Strengthening Work Culture:
Internalize the values of discipline, integrity, and excellent service through new SOPs, rewards &
punishments, and internal cultural campaigns.
Conduct regular cultural evaluations through culture audits or organizational climate surveys.
Research Limitations
1. The cross-sectional research design limits the ability to capture changes in leadership dynamics over time.
2. The research location was only one building management services company, so generalization of the findings
needs to be done with caution.
3. The use of self-report questionnaires has the potential to give rise to perception bias even though they have
been tested using CMB.
4. The mediating variables are limited to three factors, while other factors such as empowerment or job
satisfaction may provide additional explanations.
5. The sample size used a census from a small population so the results may not fully represent large-scale
service organizations.
Suggestions for Further Research
1. Use longitudinal designs to understand leadership and performance changes dynamically.
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2. Add variables such as psychological empowerment, resilience, organizational agility, or digital
leadership to build a more comprehensive model.
3. Apply the study to other service sectors ( hotels, hospitals, logistics, retail ) to increase generalizability.
4. Use mixed-methods or in-depth interviews to capture employee experiences more richly.
5. Conduct comparative studies across units or across job levels to see variations in leadership influence on
different groups.
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